Day trading difficulties

i don't think the problem is finding good setups or identifying trends and patterns, if you have been trading for a while. so no point discussing technical points on those charts as everyone trades differently and "sees" chart differently. if the problem is really about patience, it can only be resolved through time and self awareness. the below quotes are often repeated ...... and as quickly forgotten, it takes someone to be so frustrated at losing on impatience and unnecessary trades that some of these advices would stick:

“I just wait until there is money lying in the corner, and all I have to do is go over there and pick it up. I do nothing in the meantime. Even people who lose money in the market say, ‘I just lost my money now I have to do something to make it back.’ No, you don’t. You should sit there until you find something.” – by Jim Rogers.

“Jim Rogers said it perhaps most colorfully, ‘I just wait until there is money lying in the corner, and all I have to do is go over there and pick it up. I do nothing in the meantime’. In essence, by not wanting to trade, I had inadvertently transformed myself into a master of patience. By forcing myself to wait until there was a trade that appeared so compelling that I could not stand the thought of not taking it, I had vastly improved the odds.” - from New Market Wizards.

"What is trading? The KNOWLEDGE to know when the odds are in your favor, having the PATIENCE to wait for that moment, then having the DISCIPLINE to handle the trade properly when it goes in your favor and properly when it goes against you." - Paul Lange

 

in indexes,you can watch similarly based indexes and their sup/res lines to get confirmation on double or triple(multiple trading instruments) s/r or breaks,in the op's example he could watch other currencies and their s/r for a larger picture on how the bigger money is positioning their capital

 

On Friday I bough at 1.4420 at 1 x , because the price over lapped the previous consolidation attempt around 1.4420 , and it had made a second attempt to stay at at 1.4420.

The trade was profitable , but I was impatient on entry.

How does anybody build up patience for these perfect entries and perfect timing?

Is there a training or solution to gain patience?

 

there are educators selling courses to help you be more "patient" and wait for that perfect setup.
but i thought the easiest way is to have rules and trading plan. e.g. wait for the 5mins bar or 15mins bar to close and enter on the open of the next bar. i see you trade 1mins charts so that might not apply as it moves quickly. i trade 15mins charts (as u see in my above examples) so this rule in particular helps in my situation. i might drop down to 5mins chart for fine entry but at half-size, and then add when 15mins bar close confirms what i thought it should do. again, if trading 1mins i not sure how it applies though, sorry.

at the point of your entry in EUR/USD, the cross EUR/GBP just completed 3 drives lower on 15mins, so i would agree with your reversal long on EUR. i took EUR/GBP long instead.
http://2.bp.blogspot.com/-tXBJYtrSLXg/TahNjttBSlI/AAAAAAAAG94/pqvOixwR4WM/s1600/EURGBP.png

 

Do you have an example of this, say, on a 5-min intraday chart of anything? An example of 5 with-trend setups where most of them fail? I've found that the majority of trending setups succeed. The statement just makes no sense. The way a trend forms is when price pushes in one direction further than in the other direction, several times in a row.

Day trading is difficult because you have to stay focused throughout the day, and be prepared to look for entries in the other direction when the prevailing trend throws one or more reversal signals.

You also have to be very familiar with how common continuation patterns look in real time (narrow ranges, triangles, flags), so you're not accidentally trapped into believing a trend is reversing when all it's doing is consolidating and preparing to make a strong continuation move (often a full measured move).

If you're used to studying static daily charts end of day, finding swing trade setups, taking your time determining optimal stops and profit targets, then preparing your OCO orders in advance, day trading will be very difficult. A 5-min intraday chart is similar to a 90-day daily chart. You're cramming 90 "days" into your day and even more if you trade off smaller time frames.

If you grew up around day traders, then began day trading from the beginning, it would be an easy comfortable way to trade. If not, you will need to put in a lot of time and effort into recognizing valid setups, acting instinctively to trade them, and maintaining focus for the next setup, and the next, and the next. You'll also have to learn to trust your edge (once you've defined one), just as you trust that when you get into your car to go somewhere, you'll get to your destination most of the time without incapacitating stress or fear, despite the fact that driving requires constant focus and the processing of a lot of dynamic data at all times.


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"What is it like to learn to trade and trade in a context of support, comfort and confidence. It is like....necessary.

"You have those feelings from the beginning of learning, if your purpose is to build and differentiate your mind. Try to remember anything you did in your life under those circumstances. This is what you repeat doing to learn to trade.

"One of those short learning experiences was to learn to drive a car. What made it so easy? It was the long term existing environment with respect to cars."

– Jack Hershey

 

If you have trouble with finding direction on 5min, you'll run into the same problem on 1hr, daily and weekly charts as well because the same patterns occure.

 

If you bought where your 1X arrow is, then your mistake was trading against the trend. A reversal of a down trend is signaled best by first a break of a previous resistance level, followed by support at a higher low. So instead of lower highs and lower lows, you now have a higher high and a higher low. That's when you begin thinking about how you want to enter long, whether it's buying a dip to the new trend line using a limit order, or using a buy stop to let price take you into the trade as it pivots off the trend line.

 

As I mentioned earlier, that first trendline often holds, I honor it. In the case of the 1x buy, price ran right up to that first trendline and really set up for a double top with trend sell. It was just a fake reversal back to the primary trendline.

 

Hey man, sorry to hear about your trading. If you are having 4 out of 5 losing or 80% losers, you need to change your style. First of all, "set ups" my not exist. Sure, sometimes you can spot a chart pattern, but charts are what have happened in the past. Past performance does not indicate future performance. As you say, the market turns bearish to bullish and back. You have feel when the market is extended, and take a position. Market orders are what moves the market.... that has nothing to do with charts.

Also, forex is the hardest market to trade. Maybe you need a break, and change to oil, stock, bonds, or some other market you feel comfortable with.

-The operator

 

Thanks for the post, good point. I will work on this.